For renters, the real estate market in August, from its Sunny side: The range-wide average rent in Switzerland, a 1.1 percent decline. This downward trend is confirmed, in particular, year-on-year: Over the last twelve months, the decline of rental rates amounted to minus 1.3 percent. This is the ImmoScout24, in cooperation with the real estate consulting firm IAZI AG-imposed Swiss Real Estate Offer Index.
The development of the rental prices is, as usual, depending on the part of the country differently. Particularly, those in Central Switzerland (-1.5 percent) and the North-West of Switzerland (-0.8 percent), you can enjoy cheaper rental rates. It is precisely in these areas, there are a lot of empty stands, was built at the needs over. Apparently, the administrations to make concessions, lower Rents, so that their apartments will not shop keepers.
“in the real estate market observation,”
A slightly more modest price decrease is observed in the Eastern part of Switzerland (-0.4 percent) and in the lake Geneva region (-0.3 percent) to.
However, all of the tenants will not benefit from falling Rents In the sought-after large region of Zurich, the Rents remained stable. The Ticino recorded after three negative months, even a significant increase of the rental rates by a whopping 2.7 percent. Also, the rental rates in the Central country are in, with growth at 0.2 percent, is rather low.
“The Swiss real estate market is currently under special observation,” Martin Waeber, Director of ImmoScout24. Is affected particularly the Segment of the multi-family houses, not least because of the sharp rise in prices. “Pressure from the authorities, the Swiss bankers’ Association has responded with tighter guidelines for lending,” explains the real estate expert.
New rules for investment properties
These were last week by the Swiss financial market Supervisory authority (FINMA) and the Swiss Federal Department of Finance as the minimum standards accepted. In past years, the authorities have intervened repeatedly in the real estate market. “So far, mainly single-family homes and condos, however, were in the focus. The high price level of the multi-family houses is a consequence of the low and even negative interest rates.
Due to the lack of investment opportunities, is currently investing in multi-family houses is highly attractive,” said Waeber. The measures to assess to what extent the attractiveness of this object category effect remains to be seen.
prices for property fall in Switzerland
The offer prices for single-family homes fell again in August to 0.4 percent. The price per square metre for a typical single-family house is located in the Swiss average, at 6’340 Swiss francs. This value is lower than in the previous month, but still 1.2 percent above the previous year’s value.
An even stronger price decline in the condos. The offer prices for condominiums decreased with a Minus of 1.4 percent. Thus, the currently demanded price per square meter is 7‘067 CHF. Nevertheless, the price for this property category for Year basis at 1.6 per cent, continued growth.